[Introduced January 17, 2012; referred to the Committee on
Natural Resources; and then to the Committee on Finance]

____________

A BILL to amend and reenact §11-13A-3b of the Code of West
Virginia, 1931, as amended, relating to the severance and
business privilege tax; and continuing the discontinuance of
the severance and business privilege tax on the privilege of
severing timber.

Be it enacted by the Legislature of West Virginia:

That §11-13A-3b of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:

ARTICLE 13A. SEVERANCE AND BUSINESS PRIVILEGE TAX.

§11-13A-3b. Imposition of tax on privilege of severing timber.

(a) Imposition of tax. -- For the privilege of engaging or
continuing within this state in the business of severing timber for
sale, profit or commercial use, there is hereby levied and shall be
collected from every person exercising such privilege an annual
privilege tax.

(b) Rate and measure of tax. -- The tax imposed in subsection
(a) of this section shall be three and twenty-two hundredths
percent of the gross value of the timber produced, as shown by the
gross proceeds derived from the sale thereof by the producer,
except as otherwise provided in this article: Provided, That as to
timber produced after December 31, 2006 the rate of the tax imposed
in subsection (a) of this section shall be one and twenty-two
hundredths percent of the gross value of the timber produced, as
shown by the gross proceeds derived from the sale thereof by the
producer, except as otherwise provided in this article.

(c) Tax in addition to other taxes. -- The tax imposed by this
section shall apply to all persons severing timber in this state
and shall be in addition to all other taxes imposed by law.

(d) Elimination of tax. -- Beginning in the tax year 2010 and
continuing for two consecutive tax years thereafteruntil the
imposition of the additional tax on the privilege of severing
timber imposed by subsection (c), section four, article thirteen-v
of this chapter expires under the authority of subsection (g),
section four, article thirteen-v of this chapter, the tax imposed
by this section is discontinued. On and after expiration of the
additional tax on the privilege of severing timber imposed by
subsection (c), section four, article thirteen-v of this chapter,
the tax imposed by this section resumes, and shall apply to all
persons severing timber in this state at the rate of one and
twenty-two hundredths percent of the gross value of the timber
produced, as shown by the gross proceeds derived from the sale
thereof by the producer, except as otherwise provided in this
article.

NOTE: The purpose of this bill is to extend the moratorium on
the regular severance tax on the privilege of severing timber until
such time as the additional "Workers' Compensation Debt Reduction
Act" tax on the privilege of severing timber expires.

Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.